Landwood Group reports 300% increase in landlords putting their property portfolios up for auction in the past four months
Mark Bailey, Landwood Group Partner, says, “Simply put, landlords are unable to keep their head above water”
Private landlords are abandoning their property portfolios in unprecedented numbers, Landwood Group can reveal.
The Manchester-based chartered surveyors and auctioneers have seen a 300 per cent increase in instructions to sell residential buy-to-let properties in the past five months alone.
It comes amid increasingly challenging conditions for buy-to-let investors who are contending with punitive tax changes, high mortgage interest rates, increasing red-tape and uncertainty around regulations which have seen costs skyrocket.
Mark Bailey, Partner at Landwood Group comments: “The circumstances are very, very challenging for many private landlords at the moment.
“It’s increasingly difficult for many to afford the rising costs of owning rental properties, let alone make a profit.
“Simply put, many landlords are unable to keep their head above water.”
In addition, ongoing uncertainty is prolonging the pain for many landlords.
Mark adds: “Landlords are facing significant challenges not just in the short-term but in the long-term as well.
“We are seeing this in regards to regulation – while changes to Section 21, so called no fault evictions, have been kicked into the long grass, there is little clarity on whether they will come into force in the future.
“It’s a similar situation with regards to potentially tougher energy efficiency legislation.
“It means it’s incredibly challenging for landlords to plan ahead. They need more clarity and an end to this uncertainty.
“At Landwood Group, we’re seeing a rise in the number of landlords coming to us to auction their properties, as many are finding it too challenging to continue operating.
“We see cases ranging from sales of single houses to portfolios of over 100 properties.
“Our online auction service offers a lifeline for landlords who wish to realise the best returns on their properties.”
Landwood’s Advice For Struggling Landlords
- Talk to your lender as soon as you can
- Be open to advice
- Ensure you maintain your stock to avoid unnecessary costs and make it attractive to potential tenants
- Guard your tenant base – treat them fairly by resisting the temptation to hike rents at renewal
For more information visit www.landwoodgroup.com
